The California Air Resources Board (CARB) has issued a proposal to comply with the Clean Power Plan (CPP) based on California’s existing cap-and-trade program, together with complementary state policies, such as renewable fuel standards and energy efficiency requirements.
On July 15, 2016 the U.S. Court of Appeals for the Fifth Circuit granted a stay of the Environmental Protection Agency’s (EPA) regional haze rule for Texas and Oklahoma pending judicial review. The decision questions the Agency’s ability to claim that regional rules have national scope and adds to the list of pending litigations against EPA regulations, most notably, the Supreme Court’s February action granting a stay of the Clean Power Plan (CPP) which set carbon dioxide regulations for existing fossil fuel-fired power plants. Ongoing litigations highlight increasing judicial scrutiny of EPA regulations due to accusations of overreach and failure to properly consider costs and impacts of proposed or finalized rules.
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Court stay of the Environmental Protection Agency’s (EPA) regional haze rule for Texas and Oklahoma highlights the increasing judicial scrutiny of EPA regulations due to accusations of overreach and failure to properly consider costs and impacts of proposed or finalized rules.
As the legal fate of the CPP is still pending, with an outcome that will have notable implications on RGGI allowance prices, clarifications regarding RGGI’s post-2020 cap will help reduce regulatory uncertainty in the RGGI market.
As part of their 2016 Program Review, member states of the Regional Greenhouse Gas Initiative (RGGI) are examining opportunities to link RGGI with the Clean Power Plan (CPP), such as altering or removing the program’s Cost Containment Reserve (CCR) to address oversupply of allowances while preserving a mechanism to prevent price volatility. The alignment of RGGI control periods with CPP interim step periods would facilitate market expansion, as RGGI is the primary CPP compliance mechanism for member states and continues to draw attention from non-RGGI states. As the legal fate of the CPP is still pending, with an outcome that will have notable implications on allowance prices, clarifications regarding RGGI’s post-2020 cap will help reduce regulatory uncertainty in the RGGI market.
The Supreme Court’s unprecedented move to halt the Clean Power Plan is a major setback to a rule that forms the centerpiece of President Obama’s broader plan to address climate change and reflects the Court’s concerns over EPA overreach. State utility regulators now have to carefully decide whether to suspend or pursue compliance planning efforts given uncertainties over the outcome of the judicial review. Climate change, which has traditionally drawn little attention from voters, is likely to become a prominent factor in the 2016 presidential election.
Key Takeaways: President Obama emphasized progress his Administration has made in renewable energy growth and climate action in his 2016 State of the Union address Newly proposed reforms to the federal government’s management of oil and coal resources would impose additional costs to reflect environmental impacts The Obama Administration is determined to safeguard climate policy…...
Key Takeaways: The Regional Greenhouse Gas Initiative’s (RGGI) latest auction sold allowances at a record high price of $7.50 each, reflecting sound market operation Rising allowance prices signify the potential for developing carbon offset projects to meet RGGI emissions reduction requirements RGGI’s power sector-focused program is increasingly recognized for its compatibility with the Environmental Protection…...
Key Takeaways: The Environmental Protection Agency’s Clean Power Plan (CPP) has received support from 18 states and the District of Columbia, as well as multiple corporate associations, in recent motions to intervene State air quality regulators are devising their own strategies to avoid subjugation to a federal plan, which could be inconsistent with state abilities…...
Key Takeaways: Litigation over the merits of the Environmental Protection Agency’s Clean Power Plan (CPP) rulemaking will affect compliance timelines for state implementation plans Uncertainty over the timeline and outcome of litigation will burden utilities to begin preparations for state plans before the 2016 deadline The potential for the CPP to be wholly or partially…...
Key Takeaways: The Environmental Protection Agency (EPA) will strengthen the requirements for ground-level ozone under the National Ambient Air Quality Standards States and local areas would strengthen emissions control for stationary and mobile sources to ensure their plans receive EPA’s approval Stronger ozone standards will increase the burden on sources of ozone precursors, including the…...
Key Takeaways: The Environmental Protection Agency’s proposal to reduce methane emissions from the oil and gas sector would impose millions of dollars in annualized regulatory burdens despite substantial methane reductions driven by current market incentives The proposed regulations would add to the existing burden on oil and gas companies, which are currently suffering from low…...